Issue 3, 2024

The June/July 2024 issue of Nordic Fund Selection Journal presents a comprehensive overview of strategic shifts and industry insights within the Nordic institutional investment landscape. Notably, Sweden’s AP7 pension fund is undergoing significant modernisation and reorganisation under new leadership, with CIO Lena Fahlén focusing on expanding alternative investment allocations, restructuring the investment team for closer ESG integration, and reconsidering strategy amid geopolitical changes. Danske Bank Asset Management, recovering from recent challenges, announced a streamlined strategy concentrating on Nordic franchises and flagships while partnering strategically with global managers like BlackRock and Goldman Sachs to enhance scale and innovation. The journal also highlights Storebrand Asset Management's move toward increased transparency by pre-disclosing voting intentions before AGMs, emulating best practices seen with Norway’s NBIM, reflecting a broader ESG and governance trend within Nordic investors.

With an extensive interview, Anne Broeng, chairman of Denmark’s Velliv and a professional board member, offers insights into board dynamics, emphasizing the importance of board competency, ethical considerations, and managing conflicts of interest within pension fund governance under increasing regulatory scrutiny. Additionally, discussions with figures such as Skandia’s outgoing CIO Lars-Göran Orrevall underscore the value of continuity amid leadership transitions and prudent portfolio diversification. The journal also features an equity investment styles roundtable exploring growth, value, and quality approaches, affirming the importance of long-term horizons and diversification in manager selection. Meanwhile, Forea Family Office illustrates multi-family office asset allocation strategies oriented toward long-term goals and risk tolerance, navigating challenges like market concentration and sustainability integration. Together, these narratives paint a nuanced picture of evolving strategies, governance, and investment styles shaping Nordic institutional investing amidst global uncertainty.

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Table of content

Editorial and Industry Overview

An introduction to the issue highlighting key themes such as pension fund boards’ roles, competency requirements, conflicts of interest, and the increasing regulatory scrutiny in the Nordic pensions industry. The editorial also draws attention to geopolitical risks and cyber security as emerging investor concerns.

Strategy Rethink and Reorganisation at Sweden’s AP7

Insights from Lena Fahlén, newly appointed chief investment officer, on AP7’s evolving investment mandate, focusing on alternative investments, organisational restructuring, ESG integration, and adapting strategy amid global geopolitical changes. Emphasis on building internal expertise and gradually increasing direct unlisted investments.

Danske Bank Asset Management’s Strategic Changes

Thomas Otbo, CIO, discusses the recent overhaul of Danske Bank AM’s strategy including refocusing on Nordic equities and fixed income franchises, winding down non-core active strategies, and establishing strategic partnerships with Blackrock and Goldman Sachs to enhance scalability and innovation.

Storebrand Asset Management’s Voting Transparency Initiative

Storebrand’s new policy of pre-disclosing voting intentions before annual general meetings to increase transparency and engagement in active ownership, inspired by best practices from Norges Bank Investment Management, with focus on sustainable investment voting and client communications.

Leadership Transition and Portfolio Evolution at Skandia

Lars-Göran Orrevall reflects on his tenure as chief investment officer, emphasising organisational continuity, careful portfolio diversification, prudent alternative investment allocation, and the importance of internal succession planning as he prepares to step down.

Interview with Anne Broeng on Professional Board Membership

An in-depth interview with Anne Broeng, chairman of Velliv, about transitioning from executive roles to a portfolio of board positions, managing conflicts of interest, navigating regulatory competency requirements in Danish pension boards, and balancing sustainability challenges and governance.

Roundtable on Equity Investment Styles

Discussion among portfolio managers and selectors on equity style exposures, contrasting growth, value, and quality strategies. Topics include portfolio construction, long-term investment horizons, differentiation between styles, sustainability integration, and the evolving role of AI in asset management.

Forea Family Office – Long-Term Allocation Strategies

Forea’s approach to multi-family office services focusing on aligning asset allocations with clients’ long-term financial and cashflow goals. Discussion of risk tolerance, the demand for transparency, preference for passive vehicles in equities, and navigating European demographic and growth challenges.

Nordic Fund Selection Forum 2024 – Stockholm

Summary of the May event featuring geopolitical analysis and interactive discussions with fund managers on diverse asset classes including climate transition equities, European small and mid-caps, emerging markets equities and fixed income, and impact investing, concluding with perspectives on trends in manager selection.

Publication and Contact Information

Details about Nordic Fund Selection Journal’s publishing schedule, editorial contacts, subscribers, and advertising partners, plus information on forthcoming events and editorial themes.